Articles of Interest

RECEIVERSHIP

Can an association be placed into receivership by a Court under state law?

Yes. State law provides courts wide latitude in appointing receivers including in cases where necessary to preserve the property rights of any party. Typically though, the request to place an entity into receivership is done during the pendency of an existing action (e.g. the dissolution of a corporation), rather than the request itself being the underlying cause of action. (Code of Civil Procedure §564)